Vietnam's economy – an emerging market standout

While the world’s largest emerging economies of Russia, Brazil and China falter, economists are predicting Vietnam’s steady economic growth of 6.7% will make it among the fastest-growing markets in the world for 2016.

Rising domestic demand and booming foreign direct investment are helping the Southeast Asian nation counter global threats that’s sparked a wave of stock selling and currency depreciation this year.

"In a very subdued global environment, domestic demand is king," said Trinh Nguyen, a Hong-Kong based senior economist for emerging Asia at Natixis SA said. “People in Vietnam are becoming more optimistic about the future. In both the regional and global landscapes, it’s set to outperform."

“In 2016 and 2017, we definitely believe that Vietnam is positioned to be one of the fastest growth stories,” said Eugenia Victorino, an economist at Australia & New Zealand Banking Group Ltd.

Victorino said the only thing that could derail Vietnam’s fast growth story is if its trade deficit continues to widen due to much faster import growth for personal consumption items such as automobiles.